In an effort to ensure compliance with Goods and Services Tax (GST) regulations, the Central Board of Indirect Taxes and Customs (CBIC) has launched a rigorous GST verification campaign in Bathinda, Punjab. Businessmen registered on the GST network portal within this region are now mandated to prominently display their GST numbers at their business premises. Failure to do so may result in fines of up to Rs 50,000, with both state and central governments imposing penalties.
Stricter Enforcement and Increased Collection
The primary objective of this campaign, which runs until September 15, is twofold: first, to scrutinize the registration status of all businesses operating within the GST framework, and second, to bolster GST revenue collection. The district has been segmented into nine wards by the GST department, encompassing approximately 14,000 businesses. Under this directive, all business owners must inscribe their GST numbers conspicuously on their main boards or shop walls.
AETC Kapil Jindal Warns of Stringent Measures
Assistance Excise and Taxation Commissioner (AETC) Kapil Jindal underscores the gravity of non-compliance, revealing that businesses failing to display their GST numbers may incur a substantial fine of Rs 50,000. This amount is divided between the state government and the Centre, with each imposing Rs 25,000 as a penalty. Jindal emphasizes that a considerable number of businessmen are currently disregarding this regulation, with some even engaging in fraudulent GST collections from their customers.
Composite Scheme and GST Collection
It's essential to note that restaurant and dhaba owners with an annual turnover of less than 50 lakhs fall under the composite scheme and are not authorized to collect GST. Nevertheless, some of these smaller establishments are still levying a five percent GST on their customers. The taxation department has committed to taking stern action against such non-compliant entities, ensuring strict adherence to the rules.
Investigative Measures: Focus on Input Tax Credits
As part of this comprehensive campaign, tax officials are prioritizing businesses that have claimed input tax credits surpassing their sales figures. The display of GST numbers on business premises serves a dual purpose: it acts as a visual indicator of compliance and enables officers to ascertain whether the requisite taxes have been diligently deposited.
In conclusion, the CBIC's GST verification campaign in Bathinda, Punjab, serves as a vital step towards enhancing GST compliance and revenue collection. Businesses operating within this jurisdiction must promptly adhere to the mandate to display their GST numbers, thereby avoiding substantial fines and contributing to the robustness of the GST framework.